Paycheck Protection Program Reopens

Paycheck Protection Program Reopens
Posted on 01/12/2021
The forgivable Paycheck Protection Program (PPP) reopens the week of January 11. Initially, only community financial institutions may make First Draw PPP loans (starting Monday) and Second Draw PPP loans (starting Wednesday, Jan 13). PPP will open to all participating lenders shortly thereafter. To prepare for a PPP loan, review this SBA slide deck or sign up for an upcoming SBA webinar.

Many set-asides exist, including for minorities and women, first-time borrowers, low-income areas (likely includes Pullman/Whitman County).

Most lenders in Pullman are assisting existing clients and some will also assist new clients. If you are eligible (see below), contact your primary lending institution first. Here is a list of known participating lenders in Pullman. For those who qualify to apply earlier, MoFi is a regional community financial institution working with first and second draw applicants starting the week of January 11. And Hub International can to help those whose lenders are not participating in this PPP round.

The application deadline for this $284.45 billion program is March 31, 2021, subject to funding availability.

First Draw PPP Loans:
• Business entities that did not receive a PPP loan in 2020.
• First priority to first time PPP borrowers, including minority owned, veteran owned, woman owned and businesses in underserved markets.
• Must show that they were in operation on or before February 15th, 2020.
• Maximum loan amount is $2 million and not more than 300 employees per physical location.
• Accommodations and food service (NACIS 72) can employ 500 employees per physical location.
• Loan amounts are based on 2.5 times average monthly payroll. It is 3.5-times avg. monthly payroll for accommodations and food services.

Second Draw PPP Loan:
• Previously received a First Draw PPP Loan and will or has used the full amount only for authorized uses;
• No more than 300 employees
• Loan amounts are based on 2.5-times average monthly payroll. It is 3.5-times average monthly payroll for accommodations and food services.
• Must demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020, or year over year.

New:
• Eligibility is expanded to include 501(c)(6), housing cooperatives, veterans' organizations, tribal businesses, self employed individuals, sole proprietors, independent contractors and small agricultural co-operatives;
• Farmers and ranchers who operate as sole proprietors, independent contractors, self-employed individuals may utilize their gross income from their 2019 Schedule F and were in business on Feb 15, 2020 to calculate their PPP loan amount. Farm credit institutions can make PPP loans.
• PPP borrowers can set their PPP loan’s covered period to be any length between 8 and 24 weeks to best meet their business needs;
• PPP loans will cover additional expenses, including operations expenditures, property damage costs, supplier costs, and worker protection expenditures;
• The PPP provides greater flexibility for seasonal employees;
• Certain existing PPP borrowers can request to modify their First Draw PPP Loan amount; a
• Certain existing PPP borrowers are now eligible to apply for a Second Draw PPP Loan.
• Shuttered Venue Entities can receive a grant under a new program created by the new legislation but if they do, they are not eligible for a new PPP loan.
Other SBA loans and programs, both existing and new, will be available, and details are still coming out for some of these programs.

PPP Loan Announcement